Chapter PAYE70230

Published date13 April 2016
Record NumberPAYE70230
CourtHM Revenue & Customs

Cases of difficulty
Church of England
Church of Ireland
Church of Scotland
Church in Wales
Episcopal Church in Scotland

Free Churches

Free Church of Scotland
Methodist Church
Presbyterian Church in Ireland
Presbyterian Church of Wales
United Free Church of Scotland
United Reformed Church

Jewish faith
Roman Catholic Church
Salvation Army

Cases of difficulty

Report any case of difficulty to IPD Technical (Earnings)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

[Cases of difficulty
Church of England
Church of Ireland
Church of Scotland
Church in Wales
Episcopal Church in Scotland

Free Churches

Free Church of Scotland
Methodist Church
Presbyterian Church in Ireland
Presbyterian Church of Wales
United Free Church of Scotland
United Reformed Church

Jewish faith
Roman Catholic Church
Salvation Army

Cases of difficulty

Report any case of difficulty to IPD Technical (Earnings)(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

](mailto:mailto:7897838)

Church of England Ministers

Ministers of the Church of England are office holders and the guidance to follow is within the Employment Income Manual at EIM60001.

The Church Commissioners for England are paying agents for clergy and operate PAYE on stipends and periodical payments made to certain ministers under the Ordination of Women (financial provisions) Measure 1993. This periodical compensation payment is made to clergy who chose to resign when the Church of England began to ordain women.

  • Fee income received for conducting weddings, funerals and so on can be legally assigned to a Diocesan Board of Finance therefore it does not need to be considered for coding purposes. When fees are assigned in this way a Deed of Assignment will be produced
  • Any income not legally assigned is received gross. Ministers are therefore liable on these receipts and they should be treated as any other earnings
  • The value of living accommodation provided to a Minister is normally exempt (refer to EIM11351)
  • A Service Benefit is the term commonly used to describe the benefit for taxation purposes arising on payments made to clergy, without deduction of tax to cover expenditure incurred on heating, lighting, cleaning and garden upkeep (HLC)
  • Where Minister’s emoluments are paid at a rate of £8,500 per annum the Service Benefit payment (HLC) is taxable, subject to a maximum of 10 per cent of the net income from the ministry income (refer to EIM11522). The amount taxable is therefore the lesser of the amount of the HLC payments received (as reported on form P11D) or 10 per cent of the net income from the post in the year
  • Property repairs and furnishings at the Minister’s residence are normally paid...

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